Assembly Speaker Oliver calls for state attorney general to probe N.J. sports agency

Tony Kurdzuk/The Star-LedgerAssembly Speaker Sheila Oliver is shown in this 2010 file photo. Thursday, Oliver called for the state attorney general to investigate finances at the New Jersey Sports and Exposition Authority after a report published in The Star-Ledger earlier this week.

TRENTON — A top legislative leader asked the state Attorney General Thursday to investigate the payment of $3.4 million in rebates that secretly went to promoters in an effort to bring more events to the Meadowlands.

Assembly Speaker Sheila Oliver (D-Essex), who called for the probe, said the Legislature may also hold hearings.

Oliver’s request came a day after Rep. Bill Pascrell (D-8th Dist.) asked for a federal probe by the Justice Department into Live Nation, the country’s largest concert promoter, which received the bulk of the incentive payments from the New Jersey Sports and Exposition Authority.

Authority spokesman John Samerjan said the concert incentive program was in line with the industry practices nationwide.

"More importantly, it has helped bring more events and more revenue for the consumers and taxpayers of New Jersey respectively," Samerjan said.

The authority will provide the Speaker any information about the industry she requires, he said.

The controversy follows a report in The Star-Ledger earlier this week which revealed that the authority negotiated confidential deals with Live Nation and other promoters to kick back money in the form of rebates to lure acts to the Izod Center and Giants Stadium in the Meadowlands. Details of the rebates were learned after the authority released hundreds of contracts and other records, after the newspaper went to court to gain access to the documents.

A spokesman for Gov. Chris Christie had no comment Thursday on the matter. Officials in the Attorney General’s office said they received a letter from Oliver and would review it.

Gary Bongiovanni, editor of the trade publication Pollstar, said the rebate deals, which he called "volume discounts," have become common.

"When a promoter or artist has a choice of which arena they want to play, you incentivize them to take a show to one or the other," he said. "That is common."

But Oliver said secret nature of the payments raised government transparency concerns.

"They also sliced into this public authority’s profit margin for each concert," she said. "We need a better understanding of this situation, and I ask the Attorney General to shed light on it."

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